Wall Street Drug Down by Industrial Market

Cassie Bastien

8/18/2017 11:24:41 AM

Daily Gold & Silver Market Report – 08/18/2017

Extending losses from Thursday's lows, U.S. stocks opened lower Friday following losses in industrial and consumer discretionary stocks. NASDAQ along with Reuters Reporter Sruthi Shankar said, “The S&P 500 posted its biggest one-day percentage loss in about three months on Thursday amid concerns over President Donald Trump's ability to legislate his pro-growth agenda.” Adding to recent news, a possible departure of National Economic Council Director Gary Cohn, denied by the White House Thursday, has added to speculation among market watchers.

Gold Prices Hover Around $1,300

Rising to their highest level since November, Gold prices broke the long-missed level of $1,300 an ounce with help from a drop in global stocks as well as “investors [fretting] that turmoil in the White House will prevent President Donald Trump from delivering on his legislative agenda,” according to Bloomberg Reporters Ranjeetha Pakiam and Yuliya Fedorainova. The yellow metal overall has risen 13 percent in 2017 “as Trump failed to deliver on campaign promises to ramp up U.S. growth by cutting taxes and boosting infrastructure spending. ... Bullion also rose after a terror attack in Barcelona, and as quiescent U.S. inflation calls into question the Federal Reserve’s ability to go on raising interest rates.” Neil MacKinnon, an economist at VTB Capital in London, said, “This week’s events may prove to be a defining moment for President Trump, as events in Charlottesville and what seems to be a widening division between the White House and the U.S. business community puts a question mark over the President’s future.” But many are asking, can Gold prices continue to climb?

U.S. Dollar Rattled by Washington

The U.S. dollar saw extreme volatility Thursday on geopolitical concerns as well as investors' continued reaction “to Wednesday’s dovish Fed minutes as well as concerns over the Trump administration’s ability to push forward its economic agenda,” FX Empire reporter James Hyerczyk explained. Markets were also rattled by a terror attack in Barcelona along with rumors of the possible departure of a key Trump administration official. Hyerczyk said prices continued to move “in both directions throughout the session as investors continually switched from ‘risk off’ to ‘risk on’ scenarios.” Despite all the movement, the index managed to eke out a small gain.

At 12:24 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,291.40 Up $2.10
• Silver, $17.12 Down $0.02
• Platinum, $981.00 Up $0.30
• Palladium, $928.50 Down $1.60

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